Department store chain Debenhams today underlined the tough high street conditions this year as it unveiled a half-year sales dip.
The retailer said like for like sales during the six months to March 1 fell 0.7% after "challenging" conditions in January and February.
Chief executive Rob Templeman also warned that he expected retail conditions to remain difficult, but said improved market share for its clothing ranges would see the group meet profits forecasts.
He said: "Following a good performance over Christmas and the January sale, market conditions were tough through the remainder of January and February.
"The macro economic climate leads us to expect the retail environment to remain challenging and we are therefore focusing on driving sales, gaining market share and controlling our stocks and cost base."
Debenhams operates more than 140 stores in the UK and Ireland.
Total sales at Debenhams for the half year were up 1.2% year-on-year. The group said margins fell 2% during the period due to "price realignments", particularly in menswear.
The crucial Christmas period saw the retailer perform better than expected with like for like sales up 2.2%.
Debenhams was floated on the stock market just over 18 months ago - netting big profits for a private equity consortium of CVC, TPG and Merrill Lynch, which took the group private in December 2003.
The period of ownership massively increased the group's debt burden, which made the group less attractive to institutional investors on its return to the stock market.
Debenhams shares have slumped to less than a third of their May 2006 float value of 195p, resulting in a series of takeover rumours.
In January this year an investment group run by retail entrepreneur Mickey Jagtiani increased its stake in the group to 9.1% from 8.4%.
Mr Jagtiani runs the Dubai-based business Landmark Group, which has more than 600 shops in India, Spain and the Middle East.
